How Bounce increases subscription renewal rates
more top-line revenue
LTV of repeat customers purchases
growth in retention
in renewals conversion rates
Hidden bumps in subscription renewal affects your KPIs
The power of a subscription-based business is clear: once customers join your subscription plan, either for a digital service or a physical product, they’ll stick around for as long as they’re happy with what they’re getting, without needing to actively engage with your checkout flow again.
This provides sellers with revenue predictability, while offering customers a hassle-free, continuous supply of your product.
The problem is, subscription renewals often face payment issues which can result in decline rates of up to 50%.
This means that a satisfied customer who got to the next payment cycle can't ultimately pay the seller.
Getting customers to the next payment cycle and completing it successfully is key for subscription-based services and products, as it has a clear impact on retention rates, and accordingly - LTV and Unit Economics and, CAC.
The impact of failed subscription renewals
Losing a customer over a failed transaction is less than ideal. This raises the CAC (Cost of Acquisition) as it forces you to essentially repeat the entire acquisition process. That means retargeting that lead and pulling them back into your funnel. Not only does that lower your retention rates, but with more potential subscribers churning, your LTV rate drops too, which as you might have guessed, hurts your overall revenue.
How Bounce improves subscription renewal rates
Our payment experts discovered that up to 50% of subscription renewals fail because of credit card declines. This highlights an important point for all merchants: credit card transactions can fail for different reasons, be it the company, the card, processors, or the bank. The main takeaway? The moment that happens, the seller is left with virtually no insight as to how that transaction could have even been salvaged.
This is exactly why at Bounce we never underestimate a failed credit card transaction. Our ML algorithm meticulously analyzes tens of thousands of data points to uncover the real reason behind a renewal decline. Once that is established, we can identify the cause, and best of all, save them from slipping through your fingers.
What happens under the hood?
- If we find there’s a chance to save the deal, we operate at the backend to make it go through.
- If we find there’s no way this renewal will ever be charged through this card, we will notify you, so you can work on other ways to bring this customer back to the payment cycle.
From our experience, an average of 20% of the “almost lost” renewal deals can actually be saved with minimum effort and maximum wins.
More so, letting the subscriber know that the renewal didn’t go through, instead of trying to resolve the issue independently, may result in the customer ending the subscription altogether.
Bounce doesn’t require any additional budget taken into account. It also doesn’t require additional work after implementation. There is no need for customizing, monitoring, or defining anything. All you need to do is sit back and enjoy the absolute wins. Our guarantee policy involves 0% risk. We operate at the backend and approve the deals we identify as recoverable.
Based on our experience, you will see an immediate increase of 5% in your top-line revenue. On top of that, all other KPIs - Retention, CAC, LTV will also drastically improve.
Improved KPIs
lift in e-commerce
subscription refill revenue
lift in cohort-based
customer LTV
lift in subscriber retention
How Bounce helped Scale improve their subscription renewal rates
Scale is a California based, tech-driven company. They build next-generation health, wellness education, and products that address some of the world's most common health issues. They sell their products online as a subscription base or as a one off purchase and have a checkout process in place.
Scale encountered some issues during their subscription renewal process - Users were getting rejected due to false payments or credit card declines, which badly impacted their overall revenue
Diving into Scale’s process & solution
Starting with Scale’s system, we ran a comprehensive analysis of the failed renewals to see if they could be saved. If a renewal cannot be salvaged, we notify the company, relieving the need for additional efforts, resource expenditure, retargeting, etc. If the renewal can be saved, that’s when we dive in.
Through our intelligent ML system, we found that 20% of their customers were being wrongly rejected (and could be saved), due to a variety of reasons totally out of Scale’s control. We got to work and implemented our solution.
Shortly after, by cutting out a portion of those card declines, we saw a stream of steady and increased revenue, overall raising their KPIs. As more deals were seamlessly approved in real-time, a number of things took place. Customer satisfaction levels grew, retention rate improved, and even the ticket size per transaction increased, thanks to frictionless payment experiences.
More buyers naturally moved onward to another payment cycle raising subscription renewal rates and retention significantly.
“We grew our subscription retention rate by 2.4%.”
What it’s like to partner with Bounce
Every decision related to payments is a multifaceted process for any company. At Bounce, we thrive on collaboration to enhance your company's payment experiences. Our partnership approach ensures our experts seamlessly integrate into your processes, providing valuable insights and guidance.
“We work closely with bounce and see bounce’s team as partners. We constantly consult the team with any payment related decision”.
The successful collaboration with Scale's talented team has delivered the desired results – improved metrics and delighted customers. Together, we've not only met but exceeded expectations, showcasing the power of a collaborative approach in transforming payment experiences.
more top-line revenue
LTV of repeat customers purchases
growth in retention
in renewals conversion rates
Further reading
Simply (formerly JoyTune) is a global subscription service that reinvented how people discover, learn, and share creative hobbies. The company’s mission is to spark joy and creativity by empowering people to “fall in love with new creative hobbies''. With millions of learners in over 180 countries and fast revenue growth, Simply has become a global subscription service. Yet despite their fantastic success, their conversion funnel had an issue: a large percentage of failed Piano app subscription signups were failing to convert.
20% of users that already downloaded the app, and tried to sign up, pay and use the app, were declined due to a payment issue.
While the growth, marketing and UX teams were hard at work driving new subscription sign-ups, hundreds of potential valid subscribers were being rejected monthly.
That's when Roie Shiloah, Head of Growth, started the process with Bounce.
"We knew we were losing tens of thousands of dollars in potential revenue each month. We needed a trustworthy solution to optimize the signup subscription process."
We worked hand-in-hand with Roie and the Simply team to understand the lifecycle of their subscribers, the payment issues encountered, and how to optimize their sign up processes.
We then implemented our ML-powered solution to identify incorrectly flagged signup subscribers. Users that previously would have been rejected at sign up now enjoy a seamless subscription experience, and the Simply team’s top-line revenue enjoys a marked boost.
But the process didn’t stop there…
Bounce transforms Simply's free-to-paid conversions
To garner interest and gain new subscribers, Simply offers Piano registrants a free trial of their app. Simply users register and provide their credit card details to begin their free trial. When the trial period is over, Simply then processes their credit card and converts them into a paying user. If for whatever reason the payment transaction failed, Simply would then retry the charge using one of their payment provider’s existing solutions.
The challenge:
Even after retrying to charge the failed transactions, 30% of Simply’s free trials were still being declined. The marketing team had worked so hard looking for learners with passion to learn Piano, nurture their interest with compelling retargeting ads, drive them to Simply’s sign-up page, and convert them into free trial learners, all the while ensuring a fantastic onboarding experience and the ultimate in customer care.
But then, at the pivotal moment of conversion from free-trial to loyal brand learners, Simply’s learners were experiencing false declines. ROI lost. Marketing investment wasted. Revenue crushed. The results were seriously hampering the company's growth efforts.
The solution:
We analyzed thousands of failed end-of-trial payment transactions to understand which, if any, could be recovered. We discovered that 5% of the deals that were not recovered by Simply’s current process can still be recovered and converted by Bounce. That means a 2% lift to their free trial conversion.
Given the large number of free trial users that sign up for Simply each month, the recovered free trial conversion translates into a grand additional user revenue.
“Bounce is a ‘growth secret’ - our total signups revenues grew by 5% and our end-of-trial charges/renewals grew by 2%. The uplift is immediate, requires zero risk or budget, and doesn’t require any work after implementation.”
The Simply team feels safe to consult us with any questions or problems they might have, and we at Bounce learn a great deal from this collaboration and develop new ways of problem-solving. We are always brainstorming new ways to increase Simply’s revenue and conversion rates, amplifying the growth impact of our partnership.
“Bounce transparency enables complete trust. We recommended Bounce to colleagues from other b2c companies.”
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Scale is a California based, tech-driven company. They build next-generation health, wellness education, and products that address some of the world's most common health issues. They sell their products online as a subscription base or as a one off purchase and have a checkout process in place.
They knew they had challenges around checkout and subscription conversion and were hoping to find a solution to mitigate that.
We partnered with Hannah Blum, Head of Marketing Strategy, and Chris (Christapor) Arzoumanian, Senior growth product marketing manager, two industry experts.
Diving into Scale’s processes
Scale offers various types of supplements, in 5 different brands, both one-time checkouts and subscription refills. When reviewing Scale’s system, we ran a comprehensive analysis of their payments, to see which failed payments could be saved. Through our ML system, we found that 20%-30% of their customers were being wrongly rejected at the time of subscription refill/ renewal (and could be saved), due to a variety of reasons totally out of Scale’s control. We got to work and implemented our solution.
Shortly after, by cutting out a portion of those card declines, we saw a stream of steady and increased revenue, overall raising their KPIs.
As more deals were seamlessly approved in real-time, a number of things took place. Customer satisfaction levels grew, retention rate improved, and even the ticket size per transaction increased, thanks to frictionless payment experiences.
“We grew our subscription retention rate by 2.4%.”
Bouncing up lost checkout deals
Renewals were just the beginning - while analyzing Scale Media’s checkout transactions, they realized how many of their customers were actually unable to complete their purchase - 10% (!) of their customers were being rejected at checkout, due to different reasons.
We applied our proprietary machine-learning algorithms on Scale’s data, using millions of data points, and identifying which declined checkout transactions should be recovered. With our real-time ML model and zero-risk policy, we were able to recover a full 30% of Scale’s declined checkout transactions. Bounce’s auto-recovered checkout deals lift Scale’s top line by almost 3%.
As Scale’s checkout experience improved, the average user purchase size and total number of purchases increased. Instead of losing potential users to failed checkout processes, Scale was now retaining its leads and customers at much higher rates.
“We work closely with bounce and see bounce’s team as partners. We constantly consult the team with any payment related decision”.
What it’s like to partner with Bounce
Every decision related to payments is a multifaceted process for any company. At Bounce, we thrive on collaboration to enhance your company's payment experiences. Our approach is to seamlessly integrate with your processes, providing valuable insights and guidance.
The successful collaboration with Scale's talented team has driven the desired results – improved metrics and happy customers. Together, we were able to showcase the power of a collaborative approach in transforming payment experiences.
"As for the decision to work with Bounce, it was a pretty straightforward one. We took zero-risk and saw an uplift of 3-5% on our checkout generated revenue"
How Bounce improved authentication rates for Lingopie and lifted their entire business KPIs
Lingopie is the world's only language-learning application that uses real TV shows and movies to help its users learn a new language. They make language learning fun and as simple as watching your favorite TV show.
One of Lingopie’s amazing achievements is their long-lasting relationship with their users.
While joining their subscription service, Lingopie users go through an authentication process before starting their free trial. The purpose of the authentication process is to prevent fraud and attain a valid form of payment from the user.
Having a reliable, smart and efficient authentication process that validates the users is key to achieving long lasting relationships.
Before Lingopie started working with us many of their potential users did not comply with the authentication process.
We got to partner with Samuel Medalie, CFO of Lingopie and found that many users were failing the authentication stage due to faulty declines. These users could have been approved but were not making it past the initial authentication.
We integrated with Lingopie’s current authentication process, keeping the existing user journey. Putting our solution to work, our ML algorithm identifies good users who were about to be blocked by card declines. These good users were able to smoothly pass the authentication process and move on to the free trial phase, ensuring a positive experience.
After joining Bounce the number of new users completing the authentication process increased, allowing more users to initiate their journey with Lingopie and transition into paying customers.
"Bounce increased our authentication rates by 8%. Customers are automatically approved, so the user experience is seamless."
This has a huge impact on Lingopie’s subscribers, which increased by 5% as well as other KPIs such as top line, LTV, conversion rates and retention.
"Bounce helped us provide our new users with a smooth authentication experience. More users start their journey with us and stay for a longer time”
While improving Lingopie’s authentication process, we were also happy to advise them with other payment-related decisions they faced, such as optimizing their subscription process. We simply see our customers as partners and their success is also our success.